THE Northern Davao Electric Cooperative (Nordeco) is moving forward with its franchise renewal bid despite strong opposition from consumer advocates who accuse the utility of ignoring public sentiment and the intent of the Republic Act (RA) 12144.
In a statement earlier this week, Nordeco denied claims from the Davao Consumer Movement that its application is unlawful, saying it is a legitimate exercise of rights under RA 6038 and Presidential Decree 269, which created electric cooperatives as part of the government’s total electrification program.
The cooperative argued that RA 12144—which expands Davao Light’s franchise into parts of Nordeco’s coverage—does not automatically transfer service areas. The law is under Supreme Court review for alleged constitutional violations, including contract impairment and deprivation of property without due process. Nordeco stressed that until the high court rules otherwise, it retains full legal authority to operate within its franchise areas, set to expire in 2028 and 2033.
Filing early for renewal, it said, follows the Electric Power Industry Reform Act (Epira) and congressional franchise rules to ensure uninterrupted service to member-consumers.
Critics, however, claim Nordeco is disregarding the will of residents in Davao del Norte, Davao de Oro, and the Island Garden City of Samal. In an August 6 statement, Davao Consumer Movement questioned why the cooperative pursued upgrades only after RA 12144 became law, citing years of high rates and unreliable supply.
“It begs the question—why are they only stepping up improvements now? Are these just for show, considering that they are renewing their franchise?” the group said, adding that Nordeco failed to address its service record during RA 12144 deliberations.
The standoff highlights a widening rift between Nordeco and parts of its customer base, with the cooperative standing on its legal mandate while critics push for a more competitive power distributor. The fate of the disputed areas now hinges partly on the pending Supreme Court ruling. DEF